AFAP Partners with Dengo Commercial
12 November 2013_The construction of Dengo Commercial LDA, an agricultural input supply company in Matsinho Mozambique, is underway through a partnership with the African Fertilizer and Agribusiness Partnership (AFAP).
The expansion of the warehouse will enable Dengo Commercial to increase their current storage capacity from a current 30 Metric Tons to 300 Metric Tons. This number also means that Dengo will increase the number of smallholder farmers they supply to, through 13 retail networks, from 3 000 smallholder farmers to 6 500 smallholder farmers
It is anticipated that through expanding their storage capability, Dengo Commercial will purchase and store high volumes of fertilizer, enabling them to sell more fertilizer to smallholder farmers in various quantities.
The partnership addresses two challenges along the fertilizer values chain in Mozambique- fertilizer being sold in ‘one-size fits all’ packaging, and transportation costs incurred as smallholder farmers make multiple trips to buy fertilizer during the farming season.
“By increasing our storage capacity, the company will be able to buy fertilizer in bulk, and offer it in different sizes which will give smallholder farmers options of buying fertilizers suited to their needs,” said Mauricio Dengo, Manager of Dengo Commercial.
According to Sergio Ussaca, AFAP’s Mozambique Country Manager, many smallholder farmers’ travel long distances to buy fertilizers that are packaged in large bags, sometimes bags that are bigger than required.
“Logistically, it makes it hard, for smallholder farmers to take public transport from the rural areas to business districts to buy large bags of fertilizer that they have to carry back home,” Ussaca said.
Ussaca said challenges to the use of fertilizer vary, and it is pivotal for AFAP to work to address some of the big and small ones, that government and private sector tend to overlook. The travel and cost of acquiring inputs remains an impediment for many rural smallholder farmers.
“Our ability to buy fertilizer in bulk, will allow us to sell it to retailers at lower prices. Retailers will be able to sell to farmers at cheaper rates which will encourage more people to use fertilizer,” Dengo said.
Dengo Commercial in addition, is committed to providing extension services to smallholder farmers in the district. “Not only is it imperative for smallholder farmers to use fertilizer, it is of equal importance that they use the correct fertilizers, and the correct fertiliser are used in correct amounts, and we will be dedicating some of our resources and personnel towards ensuring that this is done,” Dengo said.